Power prices to rise, says Vector

Lines company Vector says householders in Auckland and Wellington will have to pay more for their power this winter.

Vector Group chief executive Mark Franklin said yesterday that the "price adjustments", to take effect from April, would amount to an average increase of about 7.23 per cent - or $4 a month - for each residential customer.

The exact rise would differ from region to region.

Vector's line charges make up about 35 per cent of the average consumer's electricity bill.

Mr Franklin said the actual line charge increase, which is set to rise by 2.85 per cent, was less than the forecasted annual inflation rate, and was thus in line with the current price threshold regime as set by the Commerce Commission.

But he blamed the biggest part of the rise (4.38 per cent) on "pass-through costs" from other organisations - especially crown entity Transpower, which manages the national grid.

- NZPA